Chapter 434 [You can don't have a face, but you can't help but earn a knife]
For such large cross-border acquisitions, companies generally have their own funds, issue new shares to raise funds in the market, apply for cross-border M&A loans from banks, or issue bonds to raise money. There are actually many ways.
If the cash flow of the acquired company is relatively good, you can also borrow money from the bank and use the company's shares as guarantee and pledge, as long as it can cover the bank's interest and principal, and then pay it off year by year. This is a common practice in many cross-border acquisitions.
It’s a routine.
Lu Ming is the pledgee of Tianqi Lithium. The biggest risk protection for such a huge fund is that the company has mines. The most important thing is that global commodity prices will skyrocket in the next two to three years.
Boss Jiang is still quite capable. He dragged Tianqi Lithium Industry, which was once on the verge of bankruptcy, out of the mud pit. At that time, he also went head-to-head with Lockwood, one of the world's four largest lithium industries, to compete for Talison. Finally, with the help of many friendly businessmen
Successfully defeated Lockwood and completed the acquisition of Talison.
The specific operation is that Tianqi Lithium spent US$5 billion in 2014 to acquire 51% of the equity of Wenfield, the parent company of Australia's Talison Lithium, thus achieving indirect control of Talison Lithium.
This move can be said to have rewritten the pattern of the world's lithium industry. Talison owns the world's largest and most endowed lithium ore resources, accounting for approximately 31% of the global lithium ore resources market share, and is currently the world's largest owner of solid lithium ores.
and its suppliers, 80% of the lithium concentrate in the domestic market is provided by Talison Lithium, including Tianqi Lithium’s spodumene raw materials are also provided by Talison.
Since then, Tianqi Lithium Industry has also acquired 20% of the equity of Zabuye Lithium Industry held by Xizang Mining to jointly develop Zabuye Salt Lake lithium resources, and acquired 100% of the equity of Yinhe Lithium Industry, achieving the world's largest and most automated
Battery grade lithium carbonate production base.
This year, there has been a plan to acquire part of the equity of Zhili Mining and Chemical SQM Company. Tianqi Lithium's series of capital operations have produced so many mines. Lu Ming is not worried about losing money on this transaction.
The worst-case scenario is that the money cannot be repaid, and the worst case scenario is that it will be taken over and reorganized, and the assets will be stockpiled for two years. By then, asset prices will have tripled.
In the CEO's office, when Han Qiulin was about to leave to arrange this work, Lu Ming suddenly stopped her and added: "By the way, you can inform Qi Wei and ask him to divert part of the diving funds to start preparations to short Zhili Mining and Chemical Industry.
SQM Inc.”
When Han Qiulin heard this, she looked back at Lu Ming in confusion, who smiled and said: "I think the Zhili government will ask the country's anti-monopoly agency to prevent Tianqi Lithium's potential acquisition of the shares of Zhili Mining and Chemical SQM Company. The reason is actually quite simple. If this deal is completed, both parties will control 70% of the global lithium market and give my country an unfair advantage in obtaining strategic resources."
It is worth mentioning that Tiansheng Capital has actually made a lot of profits from Zhili Mining and Chemical SQM Company. At that time, Tiansheng Capital had not been issued a global ban order by the general leader, and it had just gone overseas.
At the beginning of 2016, Tiansheng QDIE Fund was long Zhili Mining and Chemical Industry, and the price of opening a position was about 10 US dollars. At the beginning of this year, in order to avoid the ban of Datong Leader, it cleared the position and ran away, basically completing the escape from the top of 60 US dollars, and obtained
With a return on investment of nearly 5 times, nearly 1 billion US dollars has been earned from this company.
The company's current share price is US$45, with a total market value of approximately US$12.7 billion, or approximately 80 billion yuan.
Han Qiulin nodded: "I understand."
The next one or two years will not be friendly to the Chilean mining and chemical company SQM. The market value has dropped below US$5 billion. Naturally, Lu Ming wants to secretly push it. Not only will both bulls and shorts benefit from profits, but it can also indirectly provide financial support.
Tianqi Lithium will provide assistance through its acquisition of this company, and Tianqi Lithium will be able to continue to make another fortune here.
…
Not long after Han Qiulin left, Su Xiaoman came to Lu Ming's office. "John Brain of Goldman Sachs ran over. His assistant just came to the company and said that he had arrived in Ningzhou and was currently resting in the hotel.
I want to meet with you as soon as possible, and his assistant is waiting for a reply at the company. You have to promise John Brain to come over right away."
"Is this guy running here without making a sound again?" Lu Ming couldn't help but be stunned for a moment, and after a moment he said calmly: "See you, of course I want to see you, but let him go for a while first."
"Isn't this a bit too..." Su Xiaoman hesitated when he heard what he said.
Lu Ming smiled and said calmly: "Don't worry, you still don't understand the character of the people of the country of Mei. It is useless to talk to the people of the country of self-cultivation. If Tiansheng Capital is not strong enough,
Will he come all the way here again? Face is worthless on Wall Street. Now that he's here, he's already made it clear."
Su Xiaoman: "Okay..."
The Tiansheng Composite Index has repeatedly hit new highs. Although Wall Street has questioned it, there is no substantial evidence for this doubt. In fact, Wall Street has done a lot of investigation behind the scenes. Short-selling institutions like Muddy Waters really doubt a certain company.
If there is fraud, then it is true that repeated field investigations will be conducted to find evidence, because US stocks can be shorted.
Obviously, Wall Street really has no leverage over Tiansheng Capital.
…
John Blaine, who had been left out for two days, did not leave Ningzhou, but actually waited until this Friday, today, in order to see Lu Ming and have a conversation at the same time.
At this moment, in a reception room at the Tiansheng Capital headquarters, Lu Ming and John Brain were sitting face to face.
"Mr. Brain, are you really not angry at all?" Lu Ming looked at the foreigner sitting opposite and smiled in a playful tone. The two parties are considered old friends and this is not the first time they have met.
After hearing this, John Blaine spread his hands nonchalantly and said: "Don't be angry, that's good. In the words of you Chinese people, this is called the situation being stronger than the person. There is no way. This is the way of survival among crocodiles. It would be me."
It needs to be dried for at least three days, Mr. Lu is already very good."
Lu Ming: "..."
Ah, this... what I said made Brother Yi choke and couldn't even speak. He is a master.
What I have to say is that people in China, especially Wall Street, are a very realistic place. When you are very good at writing, they can lick you to the sky. When you are good at writing, they can call you but they don’t recognize you. Okay.
The next day, you suddenly got angry again, and he came over and licked you until it flew up. Just like John Blaine at this moment, he turned around and said to you: There is no way, this is the survival among crocodiles.
How many dollars can face be worth? You can do without face, but you can't help but earn it.
Lu Ming crossed his legs, looked at the other party and said bluntly: "Tell me, old friend, what kind of wind brought you here."
John Brain turned his head and listened to what his portable translator said. Lu Ming was actually proficient in fluent English, but he didn't speak it, so he didn't need an interpreter, let alone at the formal negotiation table.
However, John Braine could not understand Chinese, so he had to bring a translator to accompany him. As the same saying goes, the situation is stronger than the person.
Finally, John Braine looked at Lu Ming and said straight to the point: "Mr. Lu, Goldman Sachs hopes to once again entrust your company to manage an asset."
